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Accounting Policies of Usha Martin Education & Solutions Ltd. Company
Mar 31, 2025
1 Company Information
Usha Martin Education and Solutions Limited was incorporated on August 1 8th, 1997 under Comapnies Act 1956 (No. 1 of 1956) and the company is limited by shares with CIN number: L31300WB1997PLC085210, listed on NSE (Registeration no: 532398) and BSE (Registration no: UMESLTD). The Company is domiciled in India having registered office at Godrej Waterside, Block DP-5, Tower-II ,U nit-1206, 12th floor, Sector V, Salt Lake, Kolkata 700091,West Bengal.
2 General information and statement of compliance with Ind AS
These standalone financial statements (''financial statements'') of the Company have been prepared in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (''Ind AS'') specified under Section 133 of the Compa nies Act, 2013 (''the Act'') and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented. The financial statements are presented in Indian Rupees (?) which is also the functional currency of the Company.The financial statements for the year ended 31 March 2025 were authorized and approved for issue by the Board of Directors on 23 May 2025.
The financial statement have been prepared on going concern basis in accordance with accounting principals generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial labilities and share based payments which are measured at fair values as explained in relevant accounting policies. Amount in the financial statement are presented in q thousand''s, upto two decimals,unless otherwise stated.
The Financial Statements have been prepared on a historical cost convention on accrual basis, except certain financial assets and liabilities measured at fair value/amortized cost/discounted value as referred to in appropriate part of accounting policies.All assets and liabilities have been classified as current or non-current as per the company''s operating cycle and other criteria set out in the Schedule -III of Division - II to the Companies Act, 2013. The company has determined the operating cycle as 12 months based on the nature of products and the time between the acquisition of raw materials for processing and their realisation in Cash and Cash Equivalents.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current non-current classification of assets and liabilities.
An asset is treated as current when it is:
(a) Expected to be realised or intended to be sold or consumed in normal operating cycle
(b) Held primarily for the purpose of trading;
(c) Expected to be realised within twelve months after the reporting period; or
(d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is treated as current when:
(a) It is expected to be settled in normal operating cycle;
(b) It is held primarily for the purpose of trading;
(c) It is due to be settled within twelve months after the reporting period; or
(d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
(iii) Functional and presentation currency
The financial statements are presented in Indian rupees, which is the Company''s functional currency. All amounts have been rounded to the nearest ? thousands,unless otherwise indicated.
(iv) Use of estimates and judgments
The presentation of financial statements in conformity with IND AS requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosure of contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon the managements'' evaluation of the relevant facts and circumstances as at
the date of financial statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognised in the year in which the estimates are revised and in any future years affected.
4A Recent accounting pronouncements issued but not made effective
Recent accounting pronouncements issued but not made effective Ministry of Corporate Affairs (''MCA'') notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the Company
4B Application of new or amended standards
Following amendment of Ind AS-1, the concept of ''Significant Accounting Policies'' has given way to ''Material Accounting Policies'', the latter enjoins disclosure of only accounting policies in company specific context out of multiple options granted under Ind AS for such treatments. Pursuant to this the accounting policies have been divided into two parts: -
a) Material Accounting Policies
b) Other Accounting Policies
5A Material Accounting Policies
The financial statements have been prepared using the material and other accounting policies and measurement bases summarized below:
(a) Revenue recognition:
Revenue from business basically comprises of providing consultancy services which is recognized at the fulfillment of service contract and when there are no longer any unfulfilled obligations. The performance obligations in contracts are considered as fulfilled in accordance with the terms agreed with the respective customers.
Interest income is recognized using effective interest method.
Dividend income is recognized at the time when the right to receive is established by the reporting date.
Other incomes have been recognized on accrual basis in the financial statements, except when there is uncertainty of collection.
(b) Property, Plant & equipment:
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. These tangible assets are held for use in consultancy services or for administrative purposes.
Cost comprises purchase cost, freight, duties, taxes and other expenses directly incidental to acquisition, bringing the asset to the location and installation including site restoration up to the time when the asset is ready for intended use. Such costs also include borrowing cost if the recognition criteria are met.
When a major inspection/repair occurs, its cost is recognized in the carrying amount of the property, plant and equipment as a replacement if the recognition criteria are satisfied. Any remaining carrying amount of the cost of previous inspection/ repair is derecognized. All other repair and maintenance are recognized in the Standalone Statement of Profit and Loss as incurred.
Depreciation on property, plant and equipment is provided over the useful lives of assets as specified in Schedule II to the Act except where the management, has estimated useful life of an asset supported by the technical assessment, external or internal, i.e., higher or lower from the indicative useful life given under Schedule II. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
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Depreciation is calculated on a straight-line |
basis over the estimated useful lives of the assets as follows: |
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Description |
Useful lives (upto) |
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Leasehold land |
Over lease period |
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Building |
60 years |
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Plant and machinery |
15 years |
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Furniture and fixtures |
10 years |
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Vehicles |
8 years |
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Office equipment |
10 years |
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The residual value and useful life is reviewed annually and any deviation is accounted for as a change in estimate. Components relevant to property, plant and equipment, where significant, are separately depreciated on straight line basis in terms of their life span assessed by technical evaluation in item specific context.
For new projects, all direct expenses and direct overheads (excluding services of non-exclusive nature provided by employees in Company''s regular payroll are capitalized till the assets are ready for intended use.
During disposal of property, plant and equipment, any profit earned / loss sustained towards excess / shortfall of sale value visa-vis carrying cost of assets is accounted for in Standalone Statement of Profit and Loss.
c) Intangible assets:
Intangible assets acquired separately are measured on initial recognition at cost of acquisition. The cost comprises of purchase price and directly attributable costs of bringing the assets to its working condition for intended use. Intangible assets arising on acquisition of business are measured at fair value as at date of acquisition. In case of internally generated assets, measured at development cost subject to satisfaction of recognition criteria (identifiability, control and future economic benefit) in accordance with Ind AS 38 ''Intangible Assets''.
Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any.
Intangible assets with finite lives are amortized on a straight-line basis over the estimated useful economic life. The amortization expense on intangible assets with finite lives is recognized in the Standalone Statement of Profit and Loss.
Amortization of intangible assets such as softwares is computed on a straight-line basis, at the rates representing estimated useful life of up to 5 years. The brands and trademarks acquired as part of business combinations normally have a remaining legal life of not exceeding ten years but is renewable every ten years at nominal cost and is well established.
(d) Impairment of financial assets:
In accordance with Ind AS 109 ''Financial Instruments'', the Company applies expected credit loss (''ECL'') model for measurement and recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:
All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets;
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. Trade Receivables:
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109 ''Financial Instruments'', which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.
Other financial assets:
In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses. When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Company assumes that the credit risk on a inancial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.
(e) Taxes
Tax expense recognized in Standalone Statement of Profit and Loss comprises the sum of deferred tax and current tax except the ones recognized in other comprehensive income or directly in equity. Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity).
5B Other Accounting Policies
The financial statements have been prepared using the material and other accounting policies and measurement bases summarized below:
(a) Current / Non - Current classification:
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set-out in the Act. Deferred tax assets and liabilities are classified as non-current assets and non-current liabilities, as the case may be.
(b) Impairment of non-financial assets:
At each reporting date, the Company assesses whether there is any indication based on internal / external factors, that an asset may be impaired. If any such indication exists, the recoverable amount of the asset or the cash generating unit (CGU) is estimated. If such recoverable amount of the asset or CGU to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the Standalone Statement of Profit and Loss. If, at the reporting date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. Impairment losses previously recognized are accordingly reversed in the Standalone Statement of Profit and Loss. An asset is deemed impairable when recoverable value is less than its carrying cost and the difference between the two represents provisioning exigency.
(c) Financial instruments:
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities is described below:
Non-derivative financial assets: Subsequent measurement Financial assets carried at amortized cost
A financial asset is measured at the amortized cost, if both the following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (''SPPI'') on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (''EIR'') method.
Investments in equity instruments of subsidiaries.
Investments in equity instruments which are held for trading are classified as at fair value through profit or loss (''FVTPL''). For all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on an instrument by instrument basis, to classify the same either as at fair value through other comprehensive income (''FVTOCI'') or fair value through profit or loss (''FVTPL''). Amounts presented in other comprehensive income are not subsequently transferred to profit or loss. However, the Company transfers the cumulative gain or loss within equity. Dividends on such investments are recognized in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Investments in subsidiaries are carried at cost.
Debt instruments
Debt instruments are initially measured at amortized cost, fair value through other comprehensive income (''FVTOCI'') or fair value through profit or loss (''FVTPL'') till de-recognition on the basis of:
i. the entity''s business model for managing the financial assets; and
ii. The contractual cash flow characteristics of the financial asset.
(d) Measured at amortized cost
Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortized cost using the EIR method less impairment, if any. The amortization of EIR and loss arising from impairment, if any is recognized in the Standalone Statement of Profit and Loss
(e) Measured at fair value through other comprehensive income
Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (''OCI''). Interest income measured using the EIR method and impairment losses, if any are recognized in the Standalone Statement of Profit and Loss. On de-recognition, cumulative gain or loss previously recognized in OCI is reclassified from the equity to ''other income'' in the Standalone Statement of Profit and Loss.
(f) Measured at fair value through profit & loss
A financial asset not classified as either amortized cost or FVTOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognized as ''other income'' in the Standalone Statement of Profit and Loss.
De-recognition of financial assets
A financial asset is primarily de-recognized when the contractual rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.
Non- derivative financial liabilities Subsequent measurement
Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective interest method.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Standalone Statement of Profit and Loss.
Derivative financial instruments
The Company holds derivative financial instruments in the form of future contracts to mitigate the risk of changes in exchange rates on foreign currency exposure. The counterparty for these contracts are scheduled commercial banks/regulated brokerage firms. Although these derivatives constitute hedges from an economic perspective, they do not qualify for hedge accounting under Ind AS 109 ''Financial Instruments'' and consequently are categorized as financial assets or financial liabilities at fair value through profit or loss. The resulting exchange gain or loss is included in other income/expenses and attributable transaction costs are recognized in the Standalone Statement of Profit and Loss when incurred.
Financial guarantee contracts
Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment requirements of Ind AS 109 ''Financial Instruments'' and the amount recognized less cumulative amortization.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Standalone Balance Sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
(g) Fair value of measurement
The Company measures financial instruments, such as, derivatives at fair value at each Standalone Balance Sheet date.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability; or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability.The principal or the most advantageous market must be accessible by the Company.The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.The Company uses valuation techniques that are appropriate in the circumstances and for whichsufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:Level
1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.Level
2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly
observable.Level
3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liability that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The company''s management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measure at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
Liabilities in respect of employee benefits to employees are provided for as follows:
⢠Current employee benefits
a. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be incurred when the liabilities are settled. The liabilities are presented as current employee dues payable in the Standalone Balance Sheet.
b. Employees'' State Insurance (''ESI'') is provided on the basis of actual liability accrued and paid to authorities.
c. The Company has adopted a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on nonaccumulating compensated absences is recognized in the period in which the absences occur.
d. Expense in respect of other short-term benefits is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.
Post seperation employee benefit plan a. Defined benefit plan
Post separation benefits of Directors are accounted for on the basis of actuarial valuation as per Ind AS 19 ''Employee Benefits''
Gratuity liability accounted for on the basis of actuarial valuation as per Ind AS 19 ''Employee Benefits''. Liability recognized in the Standalone Balance Sheet in respect of gratuity is the present value of the defined benefit obligation at the end of each reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method. The present value of defined benefit is determined by discounting the estimated future cash outflows by reference to market yield at the end of each reporting period on government bonds that have terms approximate to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Standalone Statement of Profit and Loss.
Contribution to Provident Fund as defined contribution scheme is made at the prescribed rates to the Provident Fund Commissioner and is charged to the Statement of Profit & Loss. There is no other obligation other than the contribution payable.Actuarial gain / loss pertaining to gratuity, post separation benefits and PF trust are accounted for as OCI. All remaining components of costs are accounted for in Standalone Statement of Profit and Loss. Refer Note:27
(i) Provisions, contingent liability and contingent assets:
⢠Provisions are recognized only when there is a present obligation, as a result of past events andwhen a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.
⢠Contingent liability is disclosed for:a. Possible obligations which will be confirmed only by future events not wholly within the control of the Company; orb. Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made
. ⢠Contingent assets are neither recognized nor disclosed except when realization of income is virtually certain, related
asset is recognized.
(j) Foreign currency transaction and translations:
Foreign currency transactions are recorded in the functional currency, by applying the exchange rate between the functional currency and the foreign currency at the date of the transaction. Foreign currency monetary items outstanding at the balancesheet date are converted to functional currency using the closing rate. Non-monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transactions. Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognized in the Standalone Statement of Profit and Loss in the year in which they arise.
(k) Operation segments:
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (''CODM'') of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.
(l) Earnings per share:
Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributed to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all potentially dilutive equity shares.
(m) Borrowing Cost:
Borrowing cost consists of interest and other costs incurred in connection with the borrowing of funds and also include exchange differences to the extent regarded as an adjustment to the same. Borrowing costs directly attributable to the acquisition and/ or construction of a qualifying asset are capitalized during the period of time that is necessary to complete and prepare the asset for its intended use or sale. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Standalone Statement of Profit and Loss as incurred.
(n) Cash & Cash equivalent:
For the purpose of the Standalone Statement of Cash Flows, cash and cash equivalents consist of cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and other short-term highly liquid investments net of outstanding bank overdrafts and cash credit facilities as they are considered an integral part of the Company''s cash management.
5C Significant management judgement in applying material and other accounting policies and estimates uncertainty:
The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities:
⢠Evaluation of indicators for impairment of assets:
The evaluation of applicability of indicators of impairment of assets requires the management to make an assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.
⢠Recoverability of advances / receivables:
At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit losses on outstanding receivables and advances.
⢠Defined benefit obligation (''DBO''):
Management''s estimate of the DBO is based on a number of underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
⢠Provisions:
At each balance sheet date basis the management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.
⢠Contingencies:
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, (refer note 37). By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgments by management and the use of estimates regarding the outcome of future events.
⢠Fair value measurements:
Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and share based payments. This involves developing estimates and assumptions consistent with how market participants would price the instrument. The Company engages third party valuers,where required, to perform the valuation. Information about the valuation techniques and inputs used in determining the fair value of various assets , liabilities and share based payments are disclosed in the notes to standalone financial statements.
⢠Useful lives of depreciable / amortizable assets:
Management reviews its estimate of the useful lives of depreciable / amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.
6 Recent Pronouncements in IND AS notified effective from April 1st 2023
a) IND AS: 1 Presentation of Financial Statements
Ind AS 1 also requires entities to disclose, along with material accounting policy information or other notes, the judgements, apart from those involving estimations, that management has made in the process of applying the entity''s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
b) IND AS: 12 Deferred Taxes
Paragraphs 15 and 24 of Ind AS 12, Income Taxes exempt an entity from recognising a deferred tax asset or liability in particular circumstances. Despite this exemption, at the date of transition to Ind AS, a first-time adopter shall recognise a deferred tax assetâto the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilisedâand a deferred tax liability for all deductible and taxable temporary differences associated with:
(a) right-of-use assets and lease liabilities; and
(b) decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset."
c) Aforesaid amendment do not have material impact in the financial statements prepared for the current year.
Mar 31, 2024
3 Summary of significant accounting policies
The financial statements have been prepared using the significant accounting policies and measurement bases summarized
below:
(a) Current / Non - current classification:
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and
other criteria set-out in the Act. Deferred tax assets and liabilities are classified as non-current assets and non-current
liabilities, as the case may be.
(b) Revenue recognition:
Revenue from business basically comprises of providing consultancy services which is recognized at the fulfillment of
service contract and when there are no longer any unfulfilled obligations. The performance obligations in contracts are
considered as fulfilled in accordance with the terms agreed with the respective customers.
Interest income is recognized using effective interest method.
Dividend income is recognized at the time when the right to receive is established by the reporting date.
Other incomes have been recognized on accrual basis in the financial statements, except when there is uncertainty of
collection.
(c) Property, Plant & equipment:
Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses if
any. These tangible assets are held for use in consultancy services or for administrative purposes.
Cost comprises purchase cost, freight, duties, taxes and other expenses directly incidental to acquisition, bringing the asset
to the location and installation including site restoration up to the time when the asset is ready for intended use. Such costs
also include borrowing cost if the recognition criteria are met.
When a major inspection/repair occurs, its cost is recognized in the carrying amount of the property, plant and equipment
as a replacement if the recognition criteria are satisfied. Any remaining carrying amount of the cost of previous inspection/
repair is derecognized. All other repair and maintenance are recognized in the Standalone Statement of Profit and Loss as
incurred.
Depreciation on property, plant and equipment is provided over the useful lives of assets as specified in Schedule II to the
Act except where the management, has estimated useful life of an asset supported by the technical assessment, external or
internal, i.e., higher or lower from the indicative useful life given under Schedule II. The management believes that these
estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
The residual value and useful life is reviewed annually and any deviation is accounted for as a change in estimate.
Components relevant to property, plant and equipment, where significant, are separately depreciated on straight line basis in
terms of their life span assessed by technical evaluation in item specific context.
For new projects, all direct expenses and direct overheads (excluding services of non-exclusive nature provided by employees
in Company''s regular payroll) are capitalized till the assets are ready for intended use.
During disposal of property, plant and equipment, any profit earned / loss sustained towards excess / shortfall of sale value
vis-a-vis carrying cost of assets is accounted for in Standalone Statement of Profit and Loss.
(d) Intangible assets:
Intangible assets acquired separately are measured on initial recognition at cost of acquisition. The cost comprises of
purchase price and directly attributable costs of bringing the assets to its working condition for intended use. Intangible
assets arising on acquisition of business are measured at fair value as at date of acquisition. In case of internally generated
assets, measured at development cost subject to satisfaction of recognition criteria (identifiability, control and future
economic benefit) in accordance with Ind AS 38 ''Intangible Assets''.
Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment
loss, if any.
Intangible assets with finite lives are amortized on a straight-line basis over the estimated useful economic life. The amortization
expense on intangible assets with finite lives is recognized in the Standalone Statement of Profit and Loss.
Amortization of intangible assets such as softwares is computed on a straight-line basis, at the rates representing estimated
useful life of up to 5 years. The brands and trademarks acquired as part of business combinations normally have a
remaining legal life of not exceeding ten years but is renewable every ten years at nominal cost and is well established.
(e) Impairment of non-financial assests:
At each reporting date, the Company assesses whether there is any indication based on internal / external factors, that an
asset may be impaired. If any such indication exists, the recoverable amount of the asset or the cash generating unit (CGU)
is estimated. If such recoverable amount of the asset or CGU to which the asset belongs is less than its carrying amount, the
carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized
in the Standalone Statement of Profit and Loss. If, at the reporting date, there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
Impairment losses previously recognized are accordingly reversed in the Standalone Statement of Profit and Loss. An asset
is deemed impairable when recoverable value is less than its carrying cost and the difference between the two represents
provisioning exigency.
(f) Impairment of financial assets:
In accordance with Ind AS 1 09 ''Financial Instruments'', the Company applies expected credit loss (''ECL'') model for
measurement and recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all
contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company
expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the
weights. When estimating the cash flows, the Company is required to consider:
All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets;
⢠Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
Trade Receivables:
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109 ''Financial Instruments'',
which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected
credit losses are the expected credit losses that result from all possible default events over the expected life of a financial
instrument.
Other financial assets:
In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly
since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss
allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.
When making this assessment, the Company uses the change in the risk of a default occurring over the expected life of the
financial asset. To make that assessment, the Company compares the risk of a default occurring on the financial asset as at the
balance sheet date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers
reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases
in credit risk since initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly
since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.
(g) Financial instruments:
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions
of the financial instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at
fair value through profit or loss which are measured initially at fair value. Subsequent measurement of financial assets and
financial liabilities is described below:
Non-derivative financial assets
Subsequent measurement
Financial assets carried at amortized cost
A financial asset is measured at the amortizedcost, if both the following conditions are met:
a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows; and
b. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (''SPPI'') on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate
(''EIR'') method.
Investments in equity instruments of subsidiaries.
Investments in equity instruments which are held for trading are classified as at fair value through profit or loss (''FVTPL''). For
all other equity instruments, the Company makes an irrevocable choice upon initial recognition, on an instrument by
instrument basis, to classify the same either as at fair value through other comprehensive income (''FVTOCI'') or fair value
through profit or loss (''FVTPL''). Amounts presented in other comprehensive income are not subsequently transferred to profit
or loss. However, the Company transfers the cumulative gain or loss within equity. Dividends on such investments are
recognized in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Investments
in subsidiaries are carried at cost and private company having common director is carried at cost as well.
Debt instruments
Debt instruments are initially measured at amortized cost, fair value through other comprehensive income (''FVTOCI'') or fair
value through profit or loss (''FVTPL'') till de-recognition on the basis of:
i. the entity''s business model for managing the financial assets; and
ii. the contractual cash flow characteristics of the financial asset.
(a) Measured at amortized cost
Financial assets that are held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortized
cost using the EIR method less impairment, if any. The amortization of EIR and loss arising from impairment, if any
is recognized in the Standalone Statement of Profit and Loss
(b) Measured at fair value through other comprehensive income
Financial assets that are held within a business model whose objective is achieved by both, selling financial assets
and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured
at fa ir value through other comprehensive income. Fair value movements are recognized in the other comprehensive
income (''OCI''). Interest income measured using the EIR method and impairment losses, if any are recognized in the
Standalone Statement of Profit and Loss. On de-recognition, cumulative gain or loss previously recognized in OCI
is reclassified from the equity to ''other income'' in the Standalone Statement of Profit and Loss.
(c ) Measured at fair value through profit & loss
A financial asset not classified as either amortized cost or FVTOCI, is classified as FVTPL. Such financial assets are
measured at fair value with all changes in fair value, including interest income and dividend income if any,
recognized as ''other income'' in the Standalone Statement of Profit and Loss.
De-recognition of financial assets
A financial asset is primarily de-recognized when the contractual rights to receive cash flows from the asset have
expired or the Company has transferred its rights to receive cash flows from the asset.
Non- derivative financial liabilities
Subsequent measurement
Subsequent to initial recognition, all non-derivative financial liabilities are measured at amortised cost using the effective
interest method.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the
Standalone Statement of Profit and Loss.
Derivative financial instruments
The Company holds derivative financial instruments in the form of future contracts to mitigate the risk of changes in exchange
rates on foreign currency exposure. The counterparty for these contracts are scheduled commercial banks/regulated
brokerage firms. Although these derivatives constitute hedges from an economic perspective, they do not qualify for hedge
accounting under Ind AS 109 ''Financial Instruments'' and consequently are categorized as financial assets or financial
liabilities at fair value through profit or loss. The resulting exchange gain or loss is included in other income/expenses and
attributable transaction costs are recognized in the Standalone Statement of Profit and Loss when incurred.
Financial guarantee contracts
Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it
incurs because the specified party fails to make a payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognized as a financial liability at the time the guarantee is issued at fair value,
adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is
measured at the higher of the amount of expected loss allowance determined as per impairment requirements of Ind AS 109
''Financial Instruments'' and the amount recognized less cumulative amortization.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Standalone Balance Sheet if there is
a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize
the assets and settle the liabilities simultaneously.
(h) Fair value of measurement
The Company measures financial instruments, such as, derivatives at fair value at each Standalone Balance Sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability; or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.The fair value of an asset or a liability.
is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest.A fair value measurement of a non-financial asset takes into account
a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.The Company uses valuation techniques that
are appropriate in the circumstances and for whichsufficient data are available to measure fair value, maximizing the use
of relevant observable inputs and minimizing the use of unobservable inputs.All assets and liabilities for which fair value is
measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liability that are recognized in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The company''s management determines the policies and procedures for both recurring fair value measurement, such as
derivative instruments and unquoted financial assets measure at fair value, and for non-recurring measurement, such as
assets held for distribution in discontinued operations.
(i) Employee benefits:
Liabilities in respect of employee benefits to employees are provided for as follows:
⢠Current employee benefits
a. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognized in respect of
employees'' services up to the end of the reporting period and are measured at the amounts expected to be incurred
when the liabilities are settled. The liabilities are presented as current employee dues payable in the Standalone
Balance Sheet.
b. Employees'' State Insurance (''ESI'') is provided on the basis of actual liability accrued and paid to authorities.
c. The Company has adopted a policy on compensated absences which are both accumulating and non-accumulating
in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed
by an independent actuary at each balance sheet date using projected unit credit method on the additional amount
expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date.
Expense on non- accumulating compensated absences is recognized in the period in which the absences occur.
d. Expense in respect of other short-term benefits is recognized on the basis of the amount paid or payable for the period
during which services are rendered by the employee.
Post seperation employee benefit plan
a. Defined benefit plan
Post separation benefits of Directors are accounted for on the basis of actuarial valuation as per Ind AS 19
''Employee Benefits''
Gratuity liability accounted for on the basis of actuarial valuation as per Ind AS 19 ''Employee Benefits''. Liability recognized
in the Standalone Balance Sheet in respect of gratuity is the present value of the defined benefit obligation at the end of each
reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent
actuary using the projected unit credit method. The present value of defined benefit is determined by discounting the estimated
future cash outflows by reference to market yield at the end of each reporting period on government bonds that have terms
approximate to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in
the Standalone Statement of Profit and Loss.
Contribution to Provident Fund as defined contribution scheme is made at the prescribed rates to the Provident Fund Commissioner
and is charged to the Statement of Profit & Loss. There is no other obligation other than the contribution payable.
Actuarial gain / loss pertaining to gratuity, post separation benefits are accounted for as OCI. All remaining components of
costs are accounted for in Standalone Statement of Profit and Loss. Refer Note: 27
Mar 31, 2015
A) Basis of Preparation of Financial Statement
The Company generally follows mercantile system of accounting unless
otherwise stated and recognizes income and expenditure on accrual basis
except those with significant uncertainties. The accounts have been
prepared in accordance with historical cost convention method.
b) Fixed Assets and Depreciation
Fixed assets comprising both tangible and intangible items are stated
at cost less depreciation. The Company capitalizes all costs relating
to acquisition of fixed assets. Cost of Software expected to be used on
long-term basis is capitalized.
Depreciation (including amortization) on fixed assets has been provided
on the basis of the useful life of assets as provided in schedule II to
the Companies Act, 2013 (the "Act").
Depreciation on additions and deletions to fixed assets is provided on
a pro-rata basis.
c) Investments
Long-term investments are valued at their acquisition cost. Any decline
in the value of the said investment, other than a temporary decline, is
recognized and charged to the Statement of Profit and Loss.
Current Investments are stated at lower of cost or fair value.
d) Revenue Recognition
Revenue from training is recognized over the period of the course
program.
Revenue from operations is accounted for net of Service Tax.
e) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements and the results of operations during the reporting period.
Although these estimates are based upon management's best knowledge of
current events and actions, actual results could differ from these
estimates.
f) Current and Non Current assets and liabilities
An asset or liability is classified as current when it satisfies any of
the following criteria
(i) It is expected to be realized / settled, or is intended for sale or
consumption, in the Company's normal operating cycle:
(ii) It is held primarily for the purpose of being traded:
(iii) It is expected to be realized / due to be settled within twelve
months after the reporting date: or
(iv) It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date or
(v) The Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the
reporting date
g) Foreign Currency Transactions
Transactions in foreign currency are accounted for at the rates
prevailing on the date of the transaction. Monetary assets and
liabilities in foreign currencies at the year-end are restated at the
exchange rates prevailing on that date. Gain/loss arising out of
exchange fluctuation on settlement or such restatement are accounted
for in the Statement of Profit and Loss, except to the extent these
relate to acquisition of fixed assets, in which case these are adjusted
to the carrying value of the related fixed assets.
h) Leases
Operating Leases - Rentals are expensed with reference to lease terms
and other considerations.
i) Employee Benefits
(i) Contribution to employee provident fund is charged to revenue on a
monthly basis
(ii) Liability for retrial, gratuity and un-availed earned leave is
provided for based on an independent actuarial valuation report as per
the requirements of Accounting Standard - 15 (revised) on "Employee
Benefits".
(iii) Employee benefits of short-term nature are recognized as expense
as and when it accrues. Long term employee benefits (e.g. long-service
leave) and post employments benefits (e.g. gratuity), both funded and
unfunded, are recognized as expense based on actuarial valuation.
j) Taxation
Current Tax in respect of taxable income of the year is provided for
based on applicable tax rates and laws. Deferred tax is recognized
subject to the consideration of prudence in respect of deferred tax
assets, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods and is measured
using tax rates and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets / liabilities
are reviewed at each Balance Sheet date.
k) Borrowing Cost
Borrowing cost attributable to the acquisition and contribution of
qualifying assets are added to the cost up to date when such assets are
ready for their intended use. Other borrowings cost are recognized as
expense in the period in which these are incurred.
l) Contingencies
Contingencies, which can be reasonably ascertained, are provided for
if, in the opinion of the Company, there is a probability that the
future outcome may be materially adverse to the Company.
m) Prior Period and Extra Ordinary Items and Changes in Accounting
Policies
Prior Period and Extra Ordinary Items and Changes in Accounting
Policies having material impact on the financial affairs of the Company
are disclosed.
Mar 31, 2014
A) Basis of Preparation of Financial Statement
The Company generally follows mercantile system of accounting unless
otherwise stated and recognizes income and expenditure on accrual basis
except those with significant uncertainties. The accounts have been
prepared in accordance with historical cost convention method.
b) Fixed Assets and Depreciation
Fixed assets comprising both tangible and intangible items are stated
at cost less depreciation. The Company capitalizes all costs relating
to acquisition of fixed assets. Cost of Software expected to be used on
long-term basis is capitalized.
Depreciation (including amortization) on fixed assets is provided using
straight-line method (SLM) at the rates prescribed in schedule XIV of
the Companies Act 1956, other than Computer & Computer Software which
are depreciated under SLM over a period of 3 years. Laptops provided to
students are depreciated on SLM basis over a period of 3 or 2 years as
the case may be depending on the duration of course undertaken by the
students.
Further individual assets costing less than Rupees Five Thousands are
depreciated in full in the year of purchase. Depreciation on additions
and deletions to fixed assets is provided on a pro-rata basis.
c) Investments
Long-term investments are valued at their acquisition cost. Any decline
in the value of the said investment, other than a temporary decline, is
recognized and charged to the Statement of Profit and Loss. Current
Investments are stated at lower of cost or fair value.
d) Revenue Recognition
Revenue from training is recognized over the period of the course
program.Revenue from operations is accounted for net of Service Tax.
e) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could
differfrom these estimates.
f) Current and Non Current assets and liabilities
An asset or liability is classified as current when it satisfies any of
the following criteria
(i) It is expected to be realized / settled, or is intended for sale or
consumption, in the Company''s normal operating cycle:
(ii) It is held primarily for the purpose of being traded:
(iii) It is expected to be realized / due to be settled within twelve
months after the reporting date: or
(iv) It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date or
(v) The Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the
reporting date
g) Foreign Currency Transactions
Transactions in foreign currency are accounted for at the rates
prevailing on the date of the transaction. Monetary assets and
liabilities in foreign currencies at the year-end are restated at the
exchange rates prevailing on that date. Gain/loss arising out of
exchange fluctuation on settlement or such restatement are accounted
for in the Statement of Profit and Loss, except to the extent these
relate to acquisition of fixed assets, in which case these are adjusted
to the carrying value of the related fixed assets.
h) Leases
Operating Leases- Rentals are expensed with reference to lease terms
and other considerations.
i) Employee Benefits
(i) Contribution to employee provident fund is charged to revenue on a
monthly basis
(ii) Liability for retrial, gratuity and un-availed earned leave is
provided for based on an independent actuarial valuation report as per
the requirements of Accounting Standard - 15 (revised) on "Employee
Benefits".
(iii) Employee benefits of short-term nature are recognized as expense
as and when it accrues. Long term employee benefits (e.g. long-service
leave) and post employments benefits (e.g. gratuity), both funded and
unfunded, are recognized as expense based on actuarial valuation.
j) Taxation
Current Tax in respect of taxable income of the year is provided for
based on applicable tax rates and laws.
Deferred tax is recognized subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods and is measured using tax rates and laws that have been enacted
or substantively enacted by the Balance Sheet date. Deferred tax assets
/ liabilities are reviewed at each Balance Sheet date.
k) Borrowing Cost
Borrowing cost attributable to the acquisition and contribution of
qualifying assets are added to the cost up to date when such assets are
ready for their intended use. Other borrowing costs are recognized as
expense in the period in which these are incurred.
l) Contingencies
Contingencies, which can be reasonably ascertained, are provided for
if, in the opinion of the Company, there is a probability that the
future outcome may be materially adverse to the Company.
m) Prior Period and Extra Ordinary Items and Changes in Accounting
Policies Prior Period and Extra Ordinary Items and Changes in
Accounting Policies having material impact on the financial affairs of
the Company are disclosed.
Mar 31, 2013
A) Basis of Preparation of Financial Statement
The Company generally follows mercantile system of accounting unless
otherwise stated and recognizes income and expenditure on accrual basis
except those with significant uncertainties.The accounts have been
prepared in accordance with historical cost convention method.
b) Fixed Assets and Depreciation
Fixed assets comprising both tangible and intangible items are stated
at cost less depreciation. The Company capitalizes all costs relating
to acquisition of fixed assets. Cost of Software expected to be used on
long-term basis is capitalized.
Depreciation (including amortization) on fixed assets is provided using
straight-line method (SLM) at the rates prescribed in schedule XIV of
the Companies Act 1956, other than Computer & Computer Software which
are depreciated under SLM over a period of 3 years. Laptops provided to
students are depreciated on SLM basis over a period of 3 or 2 years as
the case may be depending on the duration of course undertaken by the
students. Further individual assets costing less than Rupees Five
Thousands are depreciated in full in the year of purchase.
Depreciation on additions and deletions to fixed assets is provided on
a pro-rata basis.
c) Investments
Long-term investments are valued at their acquisition cost. Any decline
in the value of the said investment, other than a temporary decline, is
recognized and charged to the Statement of Profit and Loss. Current
Investments are stated at lower of cost or fair value.
d) Revenue Recognition
Revenue from software services and consultancy is recognized as
follows:
_ The revenue from time and material contracts is recognized on the
basis of the time spent and materials
consumed as per the terms of the contract. _ In case of fixed price
contracts revenue is recognized on percentage completion basis based on
milestones defined in the contract. Foreseeable losses, if any, on
contract completion is provided for. Revenue from training is
recognized over the period of the course program. Revenue from
operations is accounted for net of Service Tax.
e) Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
f) Current and Non Current assets and liabilities
An asset or liability is classified as current when it satisfies any of
the following criteria
(i) It is expected to be realized / settled, or is intended for sale or
consumption, in the Company''s normal operating
cycle:
(ii) It is held primarily for the purpose of being traded:
(iii) It is expected to be realized / due to be settled within twelve
months after the reporting date: or (iv) It is cash or cash equivalent
unless it is restricted from being exchanged or used to settle a
liability for at least
twelve months after the reporting date or (v) The Company does not have
an unconditional right to defer settlement of the liability for at
least twelve months
after the reporting date
g) Foreign Currency Transactions
Transactions in foreign currency are accounted for at the rates
prevailing on the date of the transaction. Monetary assets and
liabilities in foreign currencies at the year-end are restated at the
exchange rates prevailing on that date. Gain/loss arising out of
exchange fluctuation on settlement or such restatement are accounted
for in the Statement of Profit and Loss, except to the extent these
relate to acquisition of fixed assets, in which case these are adjusted
to the carrying value of the related fixed assets.
h) Leases
_ Operating Leases Rentals are expensed with reference to lease terms
and other considerations.
i) Employee Benefits
(i) Contribution to employee provident fund is charged to revenue on a
monthly basis
(ii) Liability for retrial, gratuity and un-availed earned leave is
provided for based on an independent actuarial valuation report as per
the requirements of Accounting Standard  15 (revised) on "Employee
Benefits".
(iii) Employee benefits of short-term nature are recognized as expense
as and when it accrues. Long term employee benefits (e.g. long-service
leave) and post employments benefits (e.g. gratuity), both funded and
unfunded, are recognized as expense based on actuarial valuation.
j) Taxation
Current Tax in respect of taxable income of the year is provided for
based on applicable tax rates and laws. Deferred tax is recognized
subject to the consideration of prudence in respect of deferred tax
assets, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods and is measured
using tax rates and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets / liabilities
are reviewed at each Balance Sheet date.
k) Borrowing Cost
Borrowing cost attributable to the acquisition and contribution of
qualifying assets are added to the cost up to date when such assets are
ready for their intended use. Other borrowings cost are recognized as
expense in the period in which these are incurred.
l) Contingencies
Contingencies, which can be reasonably ascertained, are provided for
if, in the opinion of the Company, there is a probability that the
future outcome may be materially adverse to the Company.
m) Prior Period and Extra Ordinary Items and Changes in Accounting
Policies
Prior Period and Extra Ordinary Items and Changes in Accounting
Policies having material impact on the financial affairs of the Company
are disclosed.
Mar 31, 2012
A) Basis of Preparation of Financial Statement The Company generally
follows mercantile system of accounting unless otherwise stated and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. The accounts have been prepared in
accordance with historical cost convention method.
b) Fixed Assets and Depreciation Fixed assets comprising both tangible
and intangible items at cost less depreciation. The Company
capitializes all costs relating to acquisition of fixed assets. Cost
of Software expected to be used on long-term basis is capitalized.
Depreciation (including amortization) on fixed assets is provided using
straight-line method(SLM) at the rates prescribed in schedule XIV of
the Companies Act 1956, other than Computer & Computer Software and
Laptops provided to students which are also depreciated under SLM over
a period of 3 years and 2 years respectively.
Further individual assets costing less than Rupees Five Thousands are
depreciated in full in the year of purchase.
Depreciation on additions and deletions to fixed assets is provided on
a pro-rata basis.
c) Investments Long-term investments are valued at their acquisition
cost. Any declining in the value of the said investment, other than a
temporary decline, is recognized and charged to the statement of Profit
and Loss.
d) Revenue Recognition Revenue from software services and consultancy
is recognized as follows:
- The revenue from time and material contracts is recognized on the basis
of the time spent and materials consumed as per the terms of the
contract.
- In case of fixed price contracts revenue is recognized on percentage
completion basis based on milestones defined in the contract.
Foreseeable losses, if any, on contract completion is provided for.
Revenue from training is recognized over the period of the course
program. Revenue from operations is accounted of net of Service Tax.
e) Use of estimates The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the results of
operations during the reporting period. Although these estimates are
based upon management's best knowledge of current events and
actions, actual results could differ from these estimates.
f) Current & Non Current assets and liabilities An asset or liability
is classified as current when it satisfies any of the following
criteria
i) It is expected to be realized/ settled, or is intended for sale or
consumption, in the Company's normal operating cycle:
ii) It is held primarily for the purpose of being traded:
iii) It is expected to be realized/due to be settled within twelve
months after the reporting date: or
iv) It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date of
v) The Company does not have an unconditional right to defer settlement
of the liability for at least twelve months after the reporting date.
g) Foreign Currency Transactions Transactions in foreign currency are
accounted for at the rates prevailing on the date of the transaction.
Monetary assets and liabilities in foreign currencies at the year-end
are restated at the exchange rates prevailing on that date. Gain/Loss
arising out of exchange fluctuation on settlement or such restatement
are accounted for in the Statement of Profit and Loss, except to the
extent these relate to acquisition of fixed assets, in which case these
are adjusted to the carrying value of the related fixed assets.
h) Leases Operating Leases - Rentals are expensed with reference to
lease terms and other considerations.
i) Employee Benefits
(i) Contribution to employee provident fund is charged to revenue on a
monthly basis
(ii) Liability for retrial, gratuity and un-availed earned leave is
provided for based on an independent actuarial valuation report as per
the requirements of Accounting Standard - 15(revised) on "Employee
Benefits".
(iii) Employee benefits of short-term nature are recognized as expense
as and when it accrues. Long term employee benefits(e.g. long-service
leave) and past employments benefits (e.g. gratuity), both funded and
unfunded, are recognized as expense based on actuarial valuation.
j) Taxation
Current Tax in respect of taxable income of the year is provided for
based on application tax rates and laws.
Deferred tax is recognized subject to the considerations of prudence in
respect of deferred tax asset, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods and is measured using tax rates and laws that have been enacted
or substantively enacted by the Balance Sheet date. Deferred tax
assets/liabilities are reviewed at each Balance sheet date.
k) Borrowing Cost Borrowing cost attributable to the acquisition and
contribution of qualifying assets are added to the cost up to date when
such assets are read for their intended use. Other borrowings cost are
recognized as expenses in the period in which these are incurred .
l) Contingencies Contingencies, which can be reasonably ascertained,
are provided for it, in the opinion of the company, there is a
probability that the future outcome may be materially adverse to the
Company.
m) Prior Period and Extra Ordinary Items and Changes in Accounting
Policies Prior Period and Extra Ordinary items and changes in
Accounting Policies having material impact on the financial affairs of
the Company are disclosed.
Mar 31, 2011
A) Basis of Preparation of Financial Statement
The financial statements of the Company are prepared on accrual basis
and under historical cost convention.
b) Fixed Assets and Depreciation
Fixed assets comprising both tangible and intangible items are stated
at cost less depreciation. The Company capitalizes all costs relating
to acquisition of fixed assets. Cost of Software expected to be used on
long-term basis is capitalized.
Depreciation (including amortization) on fixed assets is provided using
straight-line method (SLM) at the rates prescribed in schedule XIV of
the Companies Act 1956, other than Computer & Computer Software and
Laptops provided to students which are also depreciated under SLM over
a period of 3 years and 2 years respectively.
Further individual assets costing less than Rupees Five Thousands are
depreciated in full in the year of purchase.
Depreciation on additions and deletions to fixed assets is provided on
a pro-rata basis.
c) Investments
Long-term investments are valued at their acquisition cost. Any decline
in the value of the said investment, other than a temporary decline, is
recognized and charged to the Profit and Loss Account.
Current Investments are stated at lower of cost or fair value.
d) Revenue Recognition
Revenue from software services and consultancy is recognized as
follows:
- The revenue from time and material contracts is recognized on the
basis of the time spent and materials consumed as per the terms of the
contract.
- In case of fixed price contracts revenue is recognized on percentage
completion basis based on milestones defined in the contract.
Foreseeable losses, if any, on contract completion is provided for.
Revenue from training is recognized over the period of the course
program.
e) Foreign Currency Transactions
Transactions in foreign currency are accounted for at the rates
prevailing on the date of the transaction. Monetary assets and
liabilities in foreign currencies at the year-end are restated at the
exchange rates prevailing on that date. Gain/loss arising out of
exchange fluctuation on settlement or such restatement are accounted
for in the profit and loss account, except to the extent these relate
to acquisition of fixed assets, in which case these are adjusted to the
carrying value of the related fixed assets.
f) Leases
Operating Leases- Rentals are expensed with reference to lease terms
and other considerations.
g) Employee Benefits
(i) Contribution to employee provident fund is charged to revenue on a
monthly basis
(ii) Liability for retiral, gratuity and un-availed earned leave is
provided for based on an independent actuarial valuation report as per
the requirements of Accounting Standard à 15 (revised) on "Employee
Benefits".
(iii) Employee benefits of short-term nature are recognized as expense
as and when it accrues. Long term employee benefits (e.g. long-service
leave) and post employments benefits (e.g. gratuity), both funded and
unfunded, are recognized as expense based on actuarial valuation.
h) Taxation
Current Tax in respect of taxable income of the year is provided for
based on applicable tax rates and laws.
Deferred tax is recognized subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods and is measured using tax rates and laws that have been enacted
or substantively enacted by the Balance Sheet date. Deferred tax assets
/ liabilities are reviewed at each Balance Sheet date.
i) Borrowing Cost
Borrowing cost attributable to the acquisition and contribution of
qualifying assets are added to the cost up to date when such assets are
ready for their intended use. Other borrowings cost are recognized as
expenses in the period in which these are incurred.
j) Contingencies
Contingencies, which can be reasonably ascertained, are provided for
if, in the opinion of the Company, there is a probability that the
future outcome may be materially adverse to the Company.
k) Prior Period and Extra Ordinary Items and Changes in Accounting
Policies
Prior Period and Extra Ordinary Items and Changes in Accounting
Policies having material impact on the financial affairs of the Company
are disclosed.
Mar 31, 2010
The financial statements of the Company are prepared on accrual basis
and under historical cost convention. The significant accounting
policies adopted by the Company are detailed below:
a) Fixed Assets and Depreciation
Fixed assets comprising both tangible and intangible items are stated
at cost less depreciation. The Company capitalizes all costs relating
to acquisition of fixed assets. Cost of Software expected to be used on
long-term basis is capitalized.
Depreciation (including amortization) on fixed assets is provided using
straight-line method (SLM) at the rates prescribed in schedule XIV of
the Companies Act 1956, other than Computer & Computer Software and
Laptops provided to students which are also depreciated under SLM over
a period of 3 years and 2 years respectively.
Further individual assets costing less than Rupees Five Thousands are
depreciated in full in the year of purchase.
Depreciation on additions and deletions to fixed assets is provided on
a pro-rata basis.
b) Investments
Long-term investments are valued at their acquisition cost. Any decline
in the value of the said investment, other than a temporary decline, is
recognized and charged to the profit and loss account.
Current investments are stated at lower of cost or fair value.
c) Revenue Recognition
Revenue from software services and consultancy is recognized as
follows:
The revenue from time and material contracts is recognized on the basis
of the time spent and materials consumed as per the terms of the
contract.
In case of fixed price contracts revenue is recognized on percentage
completion basis based on milestones defined in the contract.
Foreseeable losses, if any, on contract completion is provided for.
Revenue from training is recognized over the period of the course
program.
d) Foreign Currency Transactions
Transactions in foreign currency are accounted for at the rates
prevailing on the date of the transaction. Monetary assets and
liabilities in foreign currencies at the year-end are restated at the
exchange rates prevailing on that date. Gain/loss arising out of
exchange fluctuation on settlement or such restatement are accounted
for in the profit and loss account, except to the extent these relate
to acquisition of fixed assets, in which case these are adjusted to the
carrying value of the related fixed assets.
e) Leases
Lease payments under an operating lease recognized as expense in the
statement of profit and loss as per terms of lease agreement.
f) Retirement Benefits
(i) Contribution to employee provident fund is charged to revenue on a
monthly basis.
(ii) Liability for retiral, gratuity and unavailed earned leave is
provided for based on an independent actuarial valuation report as per
the requirements of Accounting Standard - 15 (revised) on "Employee
Benefits".
(iii) Employee benefits of short-term nature are recognized as expense
as and when it accrues. Long term employee benefits (e.g. long-service
leave) and post employments benefits (e.g. gratuity), both funded and
unfunded, are recognized as expense based on actuarial valuation.
g) Taxation
Current Tax in respect of taxable income of the year is provided for
based on applicable tax rates and laws. Deferred tax is recognized
subject to the consideration of prudence in respect of deferred fax
assets, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods and is measured
using tax rates and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets / liabilities
are reviewed at each Balance Sheet date.
h) Borrowing Cost
Borrowing cost attributable to the acquisition and contribution of
qualifying assets are added to the cost up to date when such assets are
ready for their intended use. Other borrowings cost are recognized as
expenses in the period in which these are incurred.
i) Contingencies
Contingencies, which can be reasonably ascertained, are provided for
if, in the opinion of the Company, there is a probability that the
future outcome may be materially adverse to the Company.
j) Prior Period and Extra Ordinary Items and Changes in Accounting
Policies Prior Period and Extra Ordinary Items and Changes in
Accounting Policies having material impact on the financial affairs
of the Company are disclosed.
k) Material Events
Material Events occurring after the Balance Sheet date are taken into
consideration.
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കേന്ദ്രബജറ്റ് സെഷന് 2026: ഇടിവോടെ തുടങ്ങി നിഫ്റ്റിയും സെന്സെക്സും, നിക്ഷേപകര് പ്രതീക്ഷിക്കുന്നതെന്ത്? -
9 മാസത്തില് 314 ശതമാനം ഉയര്ന്ന് ഹിന്ദുസ്ഥാന് കോപ്പര് ഓഹരി, ഭാവി സാധ്യതകള് -
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1065 പോയിന്റ് ഇടിഞ്ഞ് സെന്സെക്സ്, നിഫ്റ്റി 25250 ന് താഴെ; ഭാവി പ്രവണതകള് -
2025 ലെ മികച്ച ഓഹരി; കുതിപ്പ് തുടരാൻ ശ്രീറാം ഫിനാൻസ്; ലക്ഷ്യവില ഇങ്ങനെ -
തളരുന്ന രൂപയും കൊഴിയുന്ന വിദേശ നിക്ഷേപവും: നിഫ്റ്റിക്ക് മുന്നേറ്റമോ? ഈ ആഴ്ച സ്വാധീനിക്കുന്ന ഘടകങ്ങൾ
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